W. Va. Code R. § 110-21G-8

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-21G-8 - Computing Electing Pass-Through Entity Tax

8.1. An electing PTE calculates its West Virginia income tax by multiplying its West Virginia taxable income by a tax rate equal to the top marginal personal income tax rate on individuals.

8.2. Economic development tax credits and other credits allowed by law to be passed through to the owners of a pass-through entity may be applied against the electing PTE tax. These credits include, but are not limited to:

Economic Opportunity Tax Credit (W.Va. Code §11-13Q-1et seq.);

High Technology Manufacturers Credit (W.Va. Code §11-13Q-10a);

Jobs Creation Tax Credit (W.Va. Code §11-13Q-22);

Small Business Property Tax Adjustment Tax Credit (a refundable credit) (W.Va. Code §11-13MM-5);

Downstream Natural Gas Manufacturing Investment Tax Credit (W. Va. Code §11-13GG-1et seq.);

Natural Gas Liquids Property Tax Adjustment Credit (W. Va. Code §11-13HH-1et seq.);

Post-Coal Mine Site Business Credit (W. Va. Code §11-28-1et seq.);

Environmental Agricultural Equipment Credit (W. Va. Code §11-13K-1et seq.);

Military Incentive Credit (Formerly Veterans Employment Credit) (W. Va. Code §11-21-42);

High-Wage Growth Business Tax Credit (W. Va. Code §11-13II-1et seq.);

Neighborhood Investment Program Credit (W. Va. Code §11-13J-1et seq.);

Historic Rehabilitated Buildings Investment Credit (W. Va. Code §11-21-8a);

Credit For Qualified Rehabilitated Residential Building Investment (W. Va. Code §11-21-8a);

Apprenticeship Training Tax Credit (W. Va. Code §11-13W-1et seq.);

West Virginia Farm To-Food Bank Tax Credit (W. Va. Code §11-13DD-1et seq.);

Tax Credit For Donation Or Sale Of Vehicle (W. Va. Code §11-13FF-1et seq.);

Professional Services Destination Facility Tax Credit (part of the Tourism Development Tax Credit) (W. Va. Code §5B-2e-1et seq.);

Small Arms and Ammunition Manufacturing Facility Tax Credit For Federal Excise Tax Paid (W. Va. Code §11-13KK-1et seq.);

High-Wage Growth Business Tax Credit (a refundable credit) (W. Va. Code §11-13II-1et seq.); and

The West Virginia Film Industry Investment Act Credit (W. Va. Code §11-13X-1et seq.);

8.3. Treatment of the federal 26 U.S.C. §199A deduction -- The federal income tax deduction allowable under 26 U.S.C. §199A is not an allowable adjustment in determining the tax liability of an electing PTE. The federal 26 U.S.C. §199A deduction is a "below the line" federal income tax deduction. It does not reduce a Taxpayer's federal adjusted gross income. The deduction is taken after federal adjusted gross income is determined.

8.4. Treatment of depletion allowance -- The electing PTE may take a proforma depletion allowance in the amount allowable under 26 U.S.C. §611et seq., to be deducted by the electing PTE in determining West Virginia taxable income of the electing PTE at the entity level.

W. Va. Code R. § 110-21G-8